ProFrac Holding Corp. Reports Third Quarter 2024 Results
ProFrac Holding Corp. (NASDAQ: ACDC) reported Q3 2024 financial results with total revenue of $575.3 million, slightly down from $579.4 million in Q2. The company posted a net loss of $43.5 million, improving from a $65.6 million loss in Q2. Adjusted EBITDA was $134.8 million, with net cash from operations at $98.0 million. The company expects pricing and activity decline in Q4 2024, but anticipates recovery in 2025. Currently, 72% of active fleets include e-fleet or natural gas-capable equipment. Total debt outstanding was $1.17 billion, with total liquidity of $109.2 million as of September 30, 2024.
ProFrac Holding Corp. (NASDAQ: ACDC) ha riportato i risultati finanziari del terzo trimestre del 2024 con un fatturato totale di 575,3 milioni di dollari, leggermente in calo rispetto ai 579,4 milioni del secondo trimestre. L'azienda ha registrato una perdita netta di 43,5 milioni di dollari, in miglioramento rispetto a una perdita di 65,6 milioni nel secondo trimestre. L'EBITDA rettificato è stato di 134,8 milioni di dollari, con un flusso di cassa netto dalle operazioni di 98,0 milioni. L'azienda prevede un calo dei prezzi e dell'attività nel quarto trimestre del 2024, ma si aspetta una ripresa nel 2025. Attualmente, il 72% delle flotte attive include attrezzature e-fleet o capaci di utilizzare gas naturale. Il debito totale in essere era di 1,17 miliardi di dollari, con una liquidità totale di 109,2 milioni di dollari al 30 settembre 2024.
ProFrac Holding Corp. (NASDAQ: ACDC) reportó los resultados financieros del tercer trimestre de 2024 con ingresos totales de 575,3 millones de dólares, ligeramente inferiores a los 579,4 millones del segundo trimestre. La empresa publicó una pérdida neta de 43,5 millones de dólares, mejorando respecto a una pérdida de 65,6 millones en el segundo trimestre. El EBITDA ajustado fue de 134,8 millones de dólares, con un flujo de caja neto de operaciones de 98,0 millones. La compañía espera una caída en precios y actividad en el cuarto trimestre de 2024, pero anticipa una recuperación en 2025. Actualmente, el 72% de las flotas activas incluyen equipos e-fleet o capaces de operar con gas natural. La deuda total pendiente era de 1,17 mil millones de dólares, con una liquidez total de 109,2 millones de dólares al 30 de septiembre de 2024.
ProFrac Holding Corp. (NASDAQ: ACDC)는 2024년 3분기 재무 결과를 보고하며 총 매출이 5억 7,530만 달러로, 2분기의 5억 7,940만 달러에서 약간 감소했다고 밝혔습니다. 회사는 4,350만 달러의 순손실을 기록하며, 2분기의 6,560만 달러 손실에서 개선되었습니다. 조정된 EBITDA는 1억 3,480만 달러였고, 운영에서의 순 현금은 9,800만 달러였습니다. 회사는 2024년 4분기에 가격 및 활동 저하를 예상하고 있으나, 2025년의 회복을 기대하고 있습니다. 현재 72%의 활성 플릿이 e-fleet 또는 천연가스를 사용할 수 있는 장비를 포함하고 있습니다. 총 미지급 부채는 11억 7천만 달러였으며, 2024년 9월 30일 기준으로 총 유동성은 1억 920만 달러였습니다.
ProFrac Holding Corp. (NASDAQ: ACDC) a publié les résultats financiers du troisième trimestre 2024, avec un chiffre d'affaires total de 575,3 millions de dollars, légèrement en baisse par rapport à 579,4 millions au deuxième trimestre. L'entreprise a enregistré une perte nette de 43,5 millions de dollars, en amélioration par rapport à une perte de 65,6 millions au deuxième trimestre. L'EBITDA ajusté s'élevait à 134,8 millions de dollars, avec un flux de trésorerie net provenant des opérations de 98,0 millions. L'entreprise s'attend à une baisse des prix et de l'activité au quatrième trimestre 2024, mais anticipent une reprise en 2025. Actuellement, 72 % des flottes actives comprennent des équipements e-fleet ou capables d'utiliser du gaz naturel. La dette totale en cours s'élevait à 1,17 milliard de dollars, avec une liquidité totale de 109,2 millions de dollars au 30 septembre 2024.
ProFrac Holding Corp. (NASDAQ: ACDC) berichtete über die finanziellen Ergebnisse des dritten Quartals 2024 mit einem Gesamtumsatz von 575,3 Millionen Dollar, leicht rückläufig gegenüber 579,4 Millionen Dollar im zweiten Quartal. Das Unternehmen verzeichnete einen Nettoverlust von 43,5 Millionen Dollar, eine Verbesserung gegenüber einem Verlust von 65,6 Millionen Dollar im zweiten Quartal. Das bereinigte EBITDA betrug 134,8 Millionen Dollar, mit einem Nettocashflow aus der Betriebstätigkeit von 98,0 Millionen Dollar. Das Unternehmen erwartet im vierten Quartal 2024 einen Rückgang bei Preisen und Aktivitäten, rechnet jedoch mit einer Erholung im Jahr 2025. Derzeit beinhalten 72% der aktiven Flotten E-Flotten oder Ausrüstungen, die mit Erdgas betrieben werden können. Die gesamte ausstehende Verschuldung betrug 1,17 Milliarden Dollar, wobei die Gesamtliquidität zum 30. September 2024 bei 109,2 Millionen Dollar lag.
- Net loss improved to $43.5 million from $65.6 million in Q2
- Generated positive free cash flow of $30.9 million
- Maintained strong Adjusted EBITDA at $134.8 million
- 72% of active fleets include advanced e-fleet or natural gas-capable equipment
- Revenue declined to $575.3 million from $579.4 million in Q2
- Operating cash flow decreased to $98.0 million from $113.5 million in Q2
- High debt level of $1.17 billion
- Expects pricing and activity decline in Q4 2024
- Proppant Production segment facing weak demand and competitive pressure
Insights
The Q3 2024 results reveal concerning trends for ProFrac Holding Corp. Key metrics show revenue declined slightly to
The company's substantial debt position of
The company's strategic focus on electric and natural gas-capable fleets (
Third Quarter 2024 Results
- Total revenue was
compared to second quarter revenue of$575.3 million $579.4 million - Net loss was
compared to net loss of$43.5 million in the second quarter$65.6 million - Adjusted EBITDA(1) was
compared to$134.8 million in the second quarter$135.6 million - Net cash provided by operating activities was
compared to$98.0 million in the second quarter$113.5 million - Capital expenditures totaled
$70.0 million - Free cash flow(2) was
$30.9 million
Matt Wilks, ProFrac's Executive Chairman, stated, "We continued our recent quarterly trend setting new operating efficiency records while delivering leading performance for our customers amidst a challenging market environment. Despite continued activity softness, ProFrac was able to deliver strong financial results in line with the second quarter. As I have previously highlighted, ProFrac's leading position throughout the completions value chain enables us to deliver robust financial and operational performance through-the-cycle. Further, our integrated platform bolsters our commercial strategy to partner with operators that value integrated, highly efficient solutions at scale.
"ProFrac's third quarter performance is underpinned by our record-setting efficiency per active fleet, which is a clear testament to the quality of our people and their commitment to safety, efficiency and premium customer service," concluded Mr. Wilks.
Outlook
In the Stimulation Services segment, the Company anticipates pricing and activity to decline in the fourth quarter. Due to our integrated model and prudent cost management, we are able to navigate cyclicality without sacrificing service and asset quality. Based on ongoing dialogue with operators we anticipate a recovery in activity in 2025 as compared to the fourth quarter of 2024, and we continue to field new inbound requests for additional integrated fleet deployments with the highest demand for electric and Tier 4 dual fuel or DGB technologies. Today, approximately
The Proppant Production segment started to see incremental improvement as we moved through the third quarter, although natural gas-directed activity was subdued and
Business Segment Information
The Stimulation Services segment generated revenues of
The Proppant Production segment generated revenues of
The Manufacturing segment generated revenues of
Our Other Business Activities generated revenues of
Capital Expenditures and Capital Allocation
Cash capital expenditures totaled
For the full year 2024, the Company expects to incur capital expenditures closer to the lower end of previously provided guidance. Maintenance-related capital expenditures are expected to be approximately
Balance Sheet and Liquidity
Total debt outstanding as of September 30, 2024 was
Total cash and cash equivalents as of September 30, 2024 was
As of September 30, 2024 the Company had
Footnotes | |
(1) | Adjusted EBITDA is a financial measure not presented in accordance with generally accepted accounting principles ("GAAP") (a "Non-GAAP Financial Measure"). Please see "Non-GAAP Financial Measures" at the end of this news release. |
(2) | Free Cash Flow is a Non-GAAP Financial Measure. Please see "Non-GAAP Financial Measures" at the end of this news release. |
(3) | Net Debt is a Non-GAAP Financial Measure. Please see "Non-GAAP Financial Measures" at the end of this news release. |
Conference Call
ProFrac has scheduled a conference call on Tuesday, November 5, 2024 at 11:00 a.m. Eastern time / 10:00 a.m. Central time. Please dial 412-902-0030 and ask for the ProFrac Holding Corp. call at least 10 minutes prior to the start time of the call, or listen to the call live over the Internet by logging on to the website at the address https://ir.pfholdingscorp.com/news-events/ir-calendar. A telephonic replay of the conference call will be available through November 12, 2024 and may be accessed by calling 201-612-7415 and using passcode 13749864#. A webcast archive will also be available at the link above shortly after the call and will be accessible for approximately 90 days.
About ProFrac Holding Corp.
ProFrac Holding Corp. is a technology-focused, vertically integrated and innovation-driven energy services holding company providing hydraulic fracturing, proppant production, related completion services and complementary products and services to leading upstream oil and natural gas companies engaged in the exploration and production ("E&P") of North American unconventional oil and natural gas resources. The Company operates through three business segments: stimulation services, proppant production and manufacturing. For more information, please visit ProFrac's website at www.PFHoldingsCorp.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be accompanied by words such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," or similar words. Forward-looking statements relate to future events or the Company's future financial or operating performance. These forward-looking statements include, among other things, statements regarding: the Company's strategies and plans for growth; the Company's positioning, resources, capabilities, and expectations for future performance; customer, market and industry demand and expectations; the Company's expectations about the contributions of AST; the Company's expectations about price fluctuations, and macroeconomic conditions impacting the industry; competitive conditions in the industry; the Company's ability to increase the utilization of its mining assets and lower our mining costs per ton; success of the Company's ongoing strategic initiatives; the Company's intention to increase the number of fully integrated fleets; the Company's currently expected guidance regarding its 2024 and 2025 financial and operational results; the Company's ability to earn its targeted rates of return; pricing of the Company's services in light of the prevailing market conditions; the Company's currently expected guidance regarding its planned capital expenditures; statements regarding the Company's liquidity and debt obligations; the Company's anticipated timing for operationalizing and amount of contribution from its fleets and its sand mines; expectations regarding pricing per ton range; the amount of capital that may be available to the Company in future periods; any financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; any estimates and forecasts of financial and other performance metrics; and the Company's outlook and financial and other guidance. Such forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the ability to achieve the anticipated benefits of the Company's acquisitions, mining operations, and vertical integration strategy, including risks and costs relating to integrating acquired assets and personnel; risks that the Company's actions intended to achieve its 2024 and 2025 financial and operational guidance will be insufficient to achieve that guidance, either alone or in combination with external market, industry or other factors; the failure to operationalize or utilize to the extent anticipated the Company's fleets and sand mines in a timely manner or at all; the Company's ability to deploy capital in a manner that furthers the Company's growth strategy, as well as the Company's general ability to execute its business plans; the risk that the Company may need more capital than it currently projects or that capital expenditures could increase beyond current expectations; industry conditions, including fluctuations in supply, demand and prices for the Company's products and services and for natural gas; global and regional economic and financial conditions, including as they may be affected by hostilities in the
Forward-looking statements are also subject to the risks and other issues described below under "Non-GAAP Financial Measures," which could cause actual results to differ materially from current expectations included in the Company's forward-looking statements included in this press release. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward looking statements will be achieved, including without limitation any expectations about the Company's operational and financial performance or achievements through and including 2024 and 2025. There may be additional risks about which the Company is presently unaware or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. The reader should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, it expressly disclaims any duty to update these forward-looking statements, except as otherwise required by law.
Non-GAAP Financial Measures
Adjusted EBITDA, Free Cash Flow and Net Debt are non-GAAP financial measures and should not be considered as a substitute for net income (loss) or net cash from operating activities, respectively, or any other performance measure derived in accordance with GAAP or as an alternative to net cash provided by operating activities as a measure of our profitability or liquidity. Adjusted EBITDA and Free Cash Flow are supplemental measures utilized by our management and other users of our financial statements such as investors, commercial banks, research analysts and others, to assess our financial performance. We believe Adjusted EBITDA is an important supplemental measure because it allows us to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization) and items outside the control of our management team (such as income tax rates). We believe Free Cash Flow is an important supplemental liquidity measure of the cash that is available (if any), after purchases of property and equipment, for operational expenses, investment in our business, and to make acquisitions, and Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment. We believe Net Debt is an important supplemental measure of indebtedness for management and investors because it provides a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents.
We view Adjusted EBITDA and Free Cash Flow as important indicators of performance. We define Adjusted EBITDA as our net income (loss), before (i) interest expense, net, (ii) income taxes, (iii) depreciation, depletion and amortization, (iv) loss or gain on disposal of assets, (v) stock-based compensation, and (vi) other charges, such as certain credit losses, (gain) or loss on extinguishment of debt, unrealized loss (or gain) on investments, acquisition and integration expenses, litigation expenses and accruals for legal contingencies, acquisition earnout adjustments, severance charges, goodwill impairments, gains on insurance recoveries, transaction costs, third-party supply commitment charges, and impairments of long-lived assets. We define Free Cash Flow as net cash provided by or (used in) operating activities less investment in property, plant and equipment plus proceeds from sale of assets.
We believe that our presentation of Adjusted EBITDA and Free Cash Flow will provide useful information to investors in assessing our financial condition and results of operations.
Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA. Adjusted EBITDA should not be considered as an alternative to net income (loss). Adjusted EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect the most directly comparable GAAP financial measure. Because Adjusted EBITDA may be defined differently by other companies in our industry, our definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Net cash provided by operating activities is the GAAP measure most directly comparable to Free Cash Flow. Free Cash Flow should not be considered as an alternative to net cash provided by operating activities. Free Cash Flow has important limitations as an analytical tool including that Free Cash Flow does not reflect the cash requirements necessary to service our indebtedness and Free Cash Flow is not a reliable measure for actual cash available to the Company at any one time. Because Free Cash Flow may be defined differently by other companies in our industry, our definition of this Non-GAAP Financial Measure may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Net Debt is defined as total debt plus unamortized debt discounts, premiums, and issuance costs less cash and cash equivalents. Total debt is the GAAP measure most directly comparable to Net Debt. Net Debt should not be considered as an alternative to total debt. Net Debt has important limitations as a measure of indebtedness because it does not represent the total amount of indebtedness of the Company.
The presentation of Non-GAAP Financial Measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. The following tables present a reconciliation of the Non-GAAP Financial Measures of Adjusted EBITDA and Free Cash Flow to the most directly comparable GAAP financial measure for the periods indicated.
- Tables to Follow-
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||
Consolidated Balance Sheets (unaudited) | ||||||||
September 30, | December 31, | |||||||
(In millions) | 2024 | 2023 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 25.5 | $ | 25.3 | ||||
Accounts receivable, net | 358.2 | 346.1 | ||||||
Accounts receivable — related party, net | 12.8 | 6.8 | ||||||
Inventories | 239.0 | 236.6 | ||||||
Prepaid expenses and other current assets | 44.5 | 23.3 | ||||||
Total current assets | 680.0 | 638.1 | ||||||
Property, plant, and equipment, net | 1,825.3 | 1,779.0 | ||||||
Operating lease right-of-use assets, net | 127.1 | 87.2 | ||||||
Goodwill | 302.1 | 325.9 | ||||||
Intangible assets, net | 158.1 | 173.5 | ||||||
Investments | 7.5 | 28.9 | ||||||
Deferred tax assets | 0.1 | 0.3 | ||||||
Other assets | 35.6 | 37.8 | ||||||
Total assets | $ | 3,135.8 | $ | 3,070.7 | ||||
LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 356.3 | $ | 319.0 | ||||
Accounts payable — related party | 22.4 | 21.9 | ||||||
Accrued expenses | 75.5 | 65.6 | ||||||
Current portion of long-term debt | 171.9 | 126.4 | ||||||
Current portion of operating lease liabilities | 19.5 | 24.5 | ||||||
Other current liabilities | 62.2 | 84.1 | ||||||
Other current liabilities — related party | 6.7 | 7.4 | ||||||
Total current liabilities | 714.5 | 648.9 | ||||||
Long-term debt | 986.7 | 923.5 | ||||||
Long-term debt — related party | 14.6 | 18.6 | ||||||
Operating lease liabilities | 113.4 | 67.8 | ||||||
Tax receivable agreement liability | 68.1 | 68.1 | ||||||
Other liabilities | 9.0 | 15.2 | ||||||
Total liabilities | 1,906.3 | 1,742.1 | ||||||
Mezzanine equity: | ||||||||
Series A preferred stock | 62.3 | 58.7 | ||||||
Stockholders' equity: | ||||||||
Class A common stock | 1.5 | 1.5 | ||||||
Additional paid-in capital | 1,229.5 | 1,225.4 | ||||||
Accumulated deficit | (129.7) | (16.0) | ||||||
Accumulated other comprehensive income | 0.3 | 0.3 | ||||||
Total stockholders' equity attributable to ProFrac Holding Corp. | 1,101.6 | 1,211.2 | ||||||
Noncontrolling interests | 65.6 | 58.7 | ||||||
Total stockholders' equity | 1,167.2 | 1,269.9 | ||||||
Total liabilities, mezzanine equity, and stockholders' equity | $ | 3,135.8 | $ | 3,070.7 |
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||||||||||||||||||
Consolidated Statements of Operations (unaudited) | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
Sep. 30 | Jun. 30 | Sep. 30 | Jun. 30 | Sep. 30 | Sep. 30 | |||||||||||||||||||
(In millions) | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | ||||||||||||||||||
Total revenues | $ | 575.3 | $ | 579.4 | $ | 574.2 | $ | 709.2 | $ | 1,736.2 | $ | 2,140.9 | ||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||
Cost of revenues, exclusive of depreciation, depletion and amortization | 390.7 | 393.1 | 376.8 | 474.6 | 1,157.5 | 1,405.4 | ||||||||||||||||||
Selling, general, and administrative | 51.9 | 54.1 | 52.7 | 63.5 | 156.6 | 186.0 | ||||||||||||||||||
Depreciation, depletion and amortization | 112.7 | 103.4 | 111.5 | 108.9 | 328.9 | 330.7 | ||||||||||||||||||
Acquisition and integration costs | 2.0 | 2.9 | 2.6 | 5.2 | 5.1 | 20.1 | ||||||||||||||||||
Goodwill impairment | 6.8 | 67.7 | — | — | 74.5 | — | ||||||||||||||||||
Other operating expense, net | 15.5 | 7.4 | 10.1 | 3.3 | 27.2 | 17.8 | ||||||||||||||||||
Total operating costs and expenses | 579.6 | 628.6 | 553.7 | 655.5 | 1,749.8 | 1,960.0 | ||||||||||||||||||
Operating income (loss) | (4.3) | (49.2) | 20.5 | 53.7 | (13.6) | 180.9 | ||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest expense, net | (40.6) | (39.6) | (40.2) | (41.0) | (117.8) | (116.1) | ||||||||||||||||||
Gain (loss) on extinguishment of debt | — | — | — | — | (0.8) | 4.1 | ||||||||||||||||||
Other income (expense), net | (0.1) | (0.5) | (4.9) | (7.7) | 1.2 | (22.0) | ||||||||||||||||||
Income (loss) before income taxes | (45.0) | (89.3) | (24.6) | 5.0 | (131.0) | 46.9 | ||||||||||||||||||
Income tax benefit (expense) | 1.5 | 23.7 | 6.7 | (9.6) | 24.9 | (9.6) | ||||||||||||||||||
Net income (loss) | (43.5) | (65.6) | (17.9) | (4.6) | (106.1) | 37.3 | ||||||||||||||||||
Less: net (income) loss attributable to noncontrolling interests | (1.7) | (1.1) | (1.0) | 1.5 | (4.0) | 4.7 | ||||||||||||||||||
Less: net (income) loss attributable to redeemable noncontrolling interests | — | — | — | 0.2 | — | (41.8) | ||||||||||||||||||
Net income (loss) attributable to ProFrac Holding Corp. | $ | (45.2) | $ | (66.7) | $ | (18.9) | $ | (2.9) | $ | (110.1) | $ | 0.2 | ||||||||||||
Net loss attributable to Class A common shareholders | $ | (46.4) | $ | (67.9) | $ | (27.5) | $ | (2.9) | $ | (113.7) | $ | (8.4) |
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||||||||||||||
Consolidated Statements of Cash Flows (unaudited) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
Sep. 30 | Jun. 30 | Sep. 30 | Sep. 30 | Sep. 30 | ||||||||||||||||
(In millions) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income (loss) | $ | (43.5) | $ | (65.6) | $ | (17.9) | $ | (106.1) | $ | 37.3 | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation, depletion and amortization | 112.7 | 103.4 | 111.5 | 328.9 | 330.7 | |||||||||||||||
Amortization of acquired unfavorable contracts | (11.7) | (10.9) | (16.4) | (39.1) | (41.0) | |||||||||||||||
Stock-based compensation | 1.1 | 2.9 | 4.4 | 6.1 | 27.3 | |||||||||||||||
Loss (gain) on disposal of assets, net | (1.4) | 0.3 | (1.3) | (2.5) | (0.3) | |||||||||||||||
Gain on insurance recoveries | — | (3.2) | — | (3.2) | — | |||||||||||||||
Non-cash loss (gain) on extinguishment of debt | — | — | — | 0.8 | (4.1) | |||||||||||||||
Amortization of debt issuance costs | 3.6 | 4.4 | 5.9 | 11.2 | 18.8 | |||||||||||||||
Acquisition earnout adjustment | — | — | — | — | (6.6) | |||||||||||||||
Unrealized loss on investments, net | 1.1 | 1.0 | 5.1 | 0.9 | 24.1 | |||||||||||||||
Provision for supply commitment charges | 9.4 | — | — | 9.6 | — | |||||||||||||||
Goodwill impairment | 6.8 | 67.7 | — | 74.5 | — | |||||||||||||||
Deferred tax expense (benefit) | 1.8 | (27.4) | 5.0 | (25.4) | 5.0 | |||||||||||||||
Other non-cash items, net | (0.1) | — | — | (0.1) | 0.1 | |||||||||||||||
Changes in operating assets and liabilities | 18.2 | 40.9 | 27.3 | 35.2 | 119.5 | |||||||||||||||
Net cash provided by operating activities | 98.0 | 113.5 | 123.6 | 290.8 | 510.8 | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Acquisitions, net of cash acquired | — | (194.4) | — | (194.4) | (456.5) | |||||||||||||||
Investment in property, plant & equipment | (70.0) | (61.9) | (52.6) | (191.8) | (233.9) | |||||||||||||||
Proceeds from sale of assets | 2.9 | 22.4 | 1.6 | 31.9 | 3.0 | |||||||||||||||
Proceeds from insurance recoveries | 0.1 | 4.4 | — | 4.5 | — | |||||||||||||||
Other investments | — | (2.0) | — | (2.0) | — | |||||||||||||||
Net cash used in investing activities | (67.0) | (231.5) | (51.0) | (351.8) | (687.4) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from issuance of long-term debt | 15.5 | 120.9 | 14.5 | 136.4 | 334.7 | |||||||||||||||
Repayments of long-term debt | (54.4) | (18.1) | (23.4) | (110.0) | (103.9) | |||||||||||||||
Borrowings from revolving credit agreements | 546.2 | 533.1 | 355.3 | 1,580.4 | 1,219.9 | |||||||||||||||
Repayments of revolving credit agreements | (536.9) | (518.5) | (469.5) | (1,540.6) | (1,315.4) | |||||||||||||||
Payment of debt issuance costs | (0.1) | (2.3) | (0.4) | (3.5) | (18.9) | |||||||||||||||
Tax withholding related to net share settlement of equity awards | — | (1.4) | — | (1.5) | (0.8) | |||||||||||||||
Proceeds from issuance of Series A preferred stock | — | — | 50.0 | — | 50.0 | |||||||||||||||
Payment of Series A preferred stock issuance costs | — | — | (1.1) | — | (1.1) | |||||||||||||||
Net cash provided by (used in) financing activities | (29.7) | 113.7 | (74.6) | 61.2 | 164.5 | |||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 1.3 | (4.3) | (2.0) | 0.2 | (12.1) | |||||||||||||||
Cash, cash equivalents, and restricted cash beginning of period | 24.2 | 28.5 | 27.8 | 25.3 | 37.9 | |||||||||||||||
Cash, cash equivalents, and restricted cash end of period | $ | 25.5 | $ | 24.2 | $ | 25.8 | $ | 25.5 | $ | 25.8 |
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
Sep. 30 | Jun. 30 | Sep. 30 | Jun. 30 | Sep. 30 | Sep. 30 | |||||||||||||||||||
(In millions) | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | ||||||||||||||||||
Net income (loss) | $ | (43.5) | $ | (65.6) | $ | (17.9) | $ | (4.6) | $ | (106.1) | $ | 37.3 | ||||||||||||
Interest expense, net | 40.6 | 39.6 | 40.2 | 41.0 | 117.8 | 116.1 | ||||||||||||||||||
Depreciation, depletion and amortization | 112.7 | 103.4 | 111.5 | 108.9 | 328.9 | 330.7 | ||||||||||||||||||
Income tax expense (benefit) | (1.5) | (23.7) | (6.7) | 9.6 | (24.9) | 9.6 | ||||||||||||||||||
Loss (gain) on disposal of assets, net | (1.4) | 0.3 | (1.3) | (0.5) | (2.5) | (0.3) | ||||||||||||||||||
Loss (gain) on extinguishment of debt | — | — | — | — | 0.8 | (4.1) | ||||||||||||||||||
Acquisition earnout adjustment | — | — | — | (3.6) | — | (6.6) | ||||||||||||||||||
Stock-based compensation | 1.1 | 2.9 | 2.3 | 2.4 | 6.1 | 7.6 | ||||||||||||||||||
Stock-based compensation related to deemed contributions | — | — | 2.1 | 7.4 | — | 19.7 | ||||||||||||||||||
Provision for credit losses, net of recoveries | — | — | — | — | — | 0.1 | ||||||||||||||||||
Transaction costs | 3.9 | — | — | — | 3.9 | — | ||||||||||||||||||
Severance charges | 0.7 | 1.1 | 1.1 | — | 2.5 | 1.1 | ||||||||||||||||||
Acquisition and integration costs | 2.0 | 2.9 | 2.6 | 5.2 | 5.1 | 20.1 | ||||||||||||||||||
Supply commitment charges | 9.4 | — | — | — | 9.6 | — | ||||||||||||||||||
Impairment of goodwill | 6.8 | 67.7 | — | — | 74.5 | — | ||||||||||||||||||
Gain on insurance recoveries | — | (3.2) | — | — | (3.2) | — | ||||||||||||||||||
Litigation expenses and accruals for legal contingencies | 2.9 | 9.2 | 10.3 | 7.4 | 16.9 | 23.5 | ||||||||||||||||||
Unrealized loss on investments, net | 1.1 | 1.0 | 5.1 | 9.3 | 0.9 | 24.1 | ||||||||||||||||||
Adjusted EBITDA | $ | 134.8 | $ | 135.6 | $ | 149.3 | $ | 182.5 | $ | 430.3 | $ | 578.9 |
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
Sep. 30 | Jun. 30 | Sep. 30 | Jun. 30 | Sep. 30 | Sep. 30 | |||||||||||||||||||
(In millions) | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | ||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Stimulation services | $ | 507.1 | $ | 505.6 | $ | 489.5 | $ | 608.2 | $ | 1,530.0 | $ | 1,887.9 | ||||||||||||
Proppant production | 52.8 | 69.5 | 98.4 | 109.8 | 200.0 | 290.4 | ||||||||||||||||||
Manufacturing | 61.5 | 55.9 | 43.8 | 31.1 | 160.9 | 142.0 | ||||||||||||||||||
Other | 51.3 | 47.6 | 48.6 | 51.7 | 140.6 | 149.5 | ||||||||||||||||||
Total segments | 672.7 | 678.6 | 680.3 | 800.8 | 2,031.5 | 2,469.8 | ||||||||||||||||||
Eliminations | (97.4) | (99.2) | (106.1) | (91.6) | (295.3) | (328.9) | ||||||||||||||||||
Total revenues | $ | 575.3 | $ | 579.4 | $ | 574.2 | $ | 709.2 | $ | 1,736.2 | $ | 2,140.9 | ||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||
Stimulation services | $ | 112.6 | $ | 107.3 | $ | 93.3 | $ | 122.9 | $ | 345.1 | $ | 421.9 | ||||||||||||
Proppant production | 17.3 | 25.7 | 51.6 | 57.8 | 71.4 | 150.7 | ||||||||||||||||||
Manufacturing | 0.1 | 0.1 | 1.6 | 3.1 | 4.6 | 12.7 | ||||||||||||||||||
Other | 4.8 | 4.4 | 2.8 | (1.3) | 12.8 | (6.4) | ||||||||||||||||||
Total segments | 134.8 | 137.5 | 149.3 | 182.5 | 433.9 | 578.9 | ||||||||||||||||||
Eliminations | — | (1.9) | — | — | (3.6) | — | ||||||||||||||||||
Total adjusted EBITDA | $ | 134.8 | $ | 135.6 | $ | 149.3 | $ | 182.5 | $ | 430.3 | $ | 578.9 |
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||
Net Debt | ||||||||
September 30, | December 31, | |||||||
(In millions) | 2024 | 2023 | ||||||
Current portion of long-term debt | $ | 171.9 | $ | 126.4 | ||||
Long-term debt | 986.7 | 923.5 | ||||||
Long-term debt — related party | 14.6 | 18.6 | ||||||
Total debt | 1,173.2 | 1,068.5 | ||||||
Plus: unamortized debt discounts, premiums, and issuance costs | 32.5 | 39.4 | ||||||
Total principal amount of debt | 1,205.7 | 1,107.9 | ||||||
Less: cash and cash equivalents | (25.5) | (25.3) | ||||||
Net debt | $ | 1,180.2 | $ | 1,082.6 |
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||
Free Cash Flow | ||||||||
Three Months Ended | ||||||||
September 30, | June 30, | |||||||
(In millions) | 2024 | 2024 | ||||||
Net cash provided by operating activities | $ | 98.0 | $ | 113.5 | ||||
Investment in property, plant & equipment | (70.0) | (61.9) | ||||||
Proceeds from sale of assets | 2.9 | 22.4 | ||||||
Free cash flow | $ | 30.9 | $ | 74.0 |
Contacts: | ProFrac Holding Corp. |
Austin Harbour – Chief Financial Officer | |
Michael | |
Dennard Lascar Investor Relations | |
Ken Dennard / Rick Black | |
View original content:https://www.prnewswire.com/news-releases/profrac-holding-corp-reports-third-quarter-2024-results-302296104.html
SOURCE ProFrac Holding Corp.
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